Bawan’s affiliate sells stake in Utec Syria for SAR 16.5 mln

Bawan Company’s board of directors approved on Tuesday the sale of its affiliate’s, United Transformers Electric Co. Ltd. (Utec Saudi Arabia), entire 90 percent stake in Utec Syria for SAR 16.5 million ($4.4 million).

Bawan will realize a capital gain of SAR 1.6 million on the deal, which is expected to reflect on its Q3 2017 financials, the company said in a bourse statement.

The decision to sell the stake came following consecutive net losses realized by Utec Syria. The company reported net losses of SAR 734,000, SAR 281,000 and SAR 153,000 for the fiscal years 2014, 2015 and 2016 respectively.

Proceeds of the transaction will go towards financing the company’s main activities, the statement added.

Utec Syria’s assets do not represent a significant amount of Bawan’s assets, the company said.

Utec Saudi Arabia is Bawan’s 85.5 percent indirectly-owned affiliate.